The Analytical Overview of the Main Currency Pairs on 2018.10.01

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.16402

Open: 1.16158

% chg. over the last day: -0.27

Day's range: 1.15739 – 1.15873

52 wk range: 1.0571 – 1.2557

There are sales on the EUR/USD currency pair. The euro is declining against the US dollar due to the concerns regarding the budget of Italy. At the moment, the EUR/USD quotes are consolidating. The key support and resistance levels are: 1.15700 and 1.16100, respectively. We recommend opening positions from these marks. The EUR/USD currency pair has the potential for further decrease.

The news feed on 2018.10.01:

- The index of economic activity in the manufacturing sector of Germany at 10:55 (GMT+3:00);

- The index of economic activity in the manufacturing sector of the US from ISM at 17:00 (GMT+3:00).

Indicators point to the power of sellers: the price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which signals to buy EUR/USD.

Trading recommendations

Support levels: 1.15700, 1.15400, 1.15000

Resistance levels: 1.16100, 1.16500, 1.16800

If the price fixes below the support level of 1.15700, the EUR/USD quotes are expected to fall. The movement is tending to 1.15400-1.15000.

An alternative may be the growth of the EUR/USD currency pair to 1.16400-1.16700.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.30730

Open: 1.30379

% chg. over the last day: -0.39

Day's range: 1.30242 – 1.30382

52 wk range: 1.2361 – 1.4345

On Friday, the bearish sentiment prevailed on the GBP/USD currency pair. The British pound weakened against the US dollar after the publication of a weak report on UK GDP. GDP (y/y) fell to 1.2% in the second quarter, while experts expected 1.3%. GDP (q/q) counted to 0.4%, as investors expected. At the moment, the key support and resistance levels are: 1.30200 and 1.30600, respectively. The positions should be opened from these marks.

At 11:30 (GMT+3:00), the index of economic activity in the UK manufacturing sector will be published.

Indicators point to the power of sellers: the price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals to buy GBP/USD.

Trading recommendations

Support levels: 1.30200, 1.29800

Resistance levels: 1.30600, 1.31000, 1.31400

If the price fixes below the support level of 1.30200, the GBP/USD quotes are expected to fall. The movement is tending to 1.29800-1.29600.

An alternative may be the growth of the GBP/USD currency pair to 1.31000-1.31400.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.30409

Open: 1.28477

% chg. over the last day: -0.53

Day's range: 1.28184 – 1.28436

52 wk range: 1.2059 – 1.3795

Aggressive sales are observed on the USD/CAD currency pair. On Friday, the decline in quotes exceeded 200 points. Demand for Canadian currency is still at a high level. Optimistic report on Canada's GDP supports Loonie. Governor of the Bank of Canada said that in the near future the regulator could consider raising interest rates. It also became known that Canada agreed to join the trade agreement with the US and Mexico. The new agreement will be called the US-Mexico-Canada Agreement (USMCA). At the moment, the key support and resistance levels are: 1.28100 and 1.28500, respectively. We recommend looking for entry points to the market from these levels.

Today, the publication of important economic reports from Canada is not planned.

Indicators point to the power of sellers: the price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which also indicates a decline in quotes.

Trading recommendations

Support levels: 1.28100, 1.27600

Resistance levels: 1.28500, 1.29000, 1.29500

If the price fixes below 1.28100, we recommend looking for entry points to the market to open short positions. The target level for profit-taking is 1.27600-1.27400.

Alternative option. If the price fixes above the resistance level of 1.28500, the correction of the USD/CAD quotes is expected. The movement is tending to 1.29000-1.29200.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.360

Open: 113.703

% chg. over the last day: +0.27

Day's range: 113.701 – 113.761

52 wk range: 104.56 – 114.74

There is an upward trend on the USD/JPY currency pair. During the Friday’s and today's trading, the growth of quotes was almost 100 points. At the moment, local support and resistance levels are: 113.700 and 114.100, respectively. The positions should be opened from these marks. The trading instrument has the potential for further growth.

During the Asian trading session, weak statistics from Tankan have been published.

The price has fixed above 50 MA and 200 MA, which indicates the bullish sentiment.

The MACD histogram is located in the positive zone, above the signal line, which gives a strong signal to buy USD/JPY.

Stochastic Oscillator is in the overbought zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations

Support levels: 113.700, 113.350, 113.000

Resistance levels: 114.100, 114.500

If the price fixes above the local resistance of 114.100, further growth of the USD/JPY currency pair is expected. The movement is tending to 114.500-114.700.

An alternative may be the correction of the USD/JPY quotes to the level of 113.500-113.350.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.